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Sherwin-Williams Co Financial Strength

: 5 (As of Jun. 2022)
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Sherwin-Williams Co has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Sherwin-Williams Co's Interest Coverage for the quarter that ended in Jun. 2022 was 9.12. Sherwin-Williams Co's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.53. As of today, Sherwin-Williams Co's Altman Z-Score is 3.35.


Competitive Comparison

For the Specialty Chemicals subindustry, Sherwin-Williams Co's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Sherwin-Williams Co Financial Strength Distribution

For the Chemicals industry and Basic Materials sector, Sherwin-Williams Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Sherwin-Williams Co's Financial Strength falls into.



Sherwin-Williams Co Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Sherwin-Williams Co's Interest Expense for the months ended in Jun. 2022 was $-93 Mil. Its Operating Income for the months ended in Jun. 2022 was $847 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $10,077 Mil.

Sherwin-Williams Co's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*847.3/-92.9
=9.12

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Sherwin-Williams Co's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(2430.7 + 10076.7) / 23489.2
=0.53

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Sherwin-Williams Co has a Z-score of 3.35, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.35 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Sherwin-Williams Co  (NYSE:SHW) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Sherwin-Williams Co has the Financial Strength Rank of 5.


Sherwin-Williams Co Financial Strength Related Terms

Thank you for viewing the detailed overview of Sherwin-Williams Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Sherwin-Williams Co Business Description

Sherwin-Williams Co logo
Address
101 West Prospect Avenue, Cleveland, OH, USA, 44115-1075
Sherwin-Williams is the largest provider of architectural paint in the United States. The company has approximately 4,800 stores and sells premium paint at higher price points than most competitors. Sherwin-Williams also sells paint-related products in big-box stores and provides coatings for original equipment manufacturers.
Executives
Jorgenrud Karl J officer: President, Perf Coatings Group 101 WEST PROSPECT AVENUE 1180 MIDLAND CLEVELAND OH 44115
Rea Todd D officer: President, Consumer Brands Grp 101 W. PROSPECT AVENUE 1180 MIDLAND CLEVELAND OH 44115
Stewart Marta R director C/O NORFOLK SOUTHERN CORP THREE COMMERCIAL PL NORFOLK VA 23510-9219
Powell Aaron director P.O. BOX 619100 DALLAS TX 75261-9100
Young Bryan J officer: SVP - Corp Strategy & Devel. 101 W. PROSPECT AVENUE CLEVELAND OH 44115
Sladek Joseph F officer: Pres. & GM, Glob. Supply Chain 101 W. PROSPECT AVENUE CLEVELAND OH 44115
Padden Brian E officer: President, Consumer Brands Grp 101 W. PROSPECT CLEVELAND OH 44115
Binns Justin T officer: President, Perf Coatings Grp 101 W. PROSPECT AVENUE CLEVELAND OH 44115
Petz Heidi G officer: President, Consumer Brands Grp 101 W. PROSPECT AVENUE CLEVELAND OH 44115
Jaye James R officer: SVP - IR & Corp. Comm. 101 W. PROSPECT AVENUE CLEVELAND OH 44115
Anderson Kerrii B director WENDY'S INTERNATIONAL, INC 4288 WEST DUBLIN-GRANVILLE RD. DUBLIN OH 43017
Fettig Jeff M director C/O WHIRLPOOL CORP 2000 M-63N BENTON HARBOR MI 49022
Lynch Robert F officer: President, Consumer Brands Grp 101 W. PROSPECT AVENUE CLEVELAND OH 44115
Ippolito Peter J. officer: President, The Americas Group 101 W. PROSPECT AVENUE CLEVELAND OH 44115
Garceau Mary L officer: SVP, Gen. Counsel & Secretary 101 W. PROSPECT AVENUE CLEVELAND OH 44115

Sherwin-Williams Co Headlines

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